Zuko Komisa
- Rising costs of living are forcing South African households to use credit for basic daily essentials.
- Expert Tsungai Masendeke warns that using debt as a survival lifeline creates a dangerous financial cycle.
- Strategic budgeting and understanding credit risks are vital for residents to regain financial stability.
South Africans are increasingly caught in a precarious financial trap, as the escalating cost-of-living crisis forces households to rely on credit for survival.
Essential expenses, including groceries, transport, and utilities have outpaced wage growth, transforming debt from a tool for asset building into a desperate lifeline for daily necessities.
To navigate these turbulent waters, experts suggest a rigorous audit of household expenditure and a focus on debt consolidation where possible.
By understanding the distinction between productive and destructive borrowing, South Africans can begin to reclaim their financial independence despite the ongoing economic pressure.
Kaya Biz with Gugulethu Mfuphi spoke to Certified Financial Planner Tsungai Masendeke, who warns that this shift toward “survival borrowing” carries severe long-term risks.
When credit is used to plug holes in a monthly budget rather than for strategic investment, families risk entering a debt spiral that becomes nearly impossible to escape without professional intervention or a radical shift in spending habits.
“When you realise you are struggling, approach the financial institutions, and yes the calls might not be the most effective way of doing it, so take time and actually go to the institutions themselves, because what I know is they are happier to renegotiate the terms in order to keep you for a little longer, than to actually have to go through the litigation process.” says Masendeke
Listen to the full conversation here:
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